Canada is preparing to initiate discussions on exporting liquefied natural gas (LNG) to Germany, aiming to meet the increasing demand within the European Union. This topic was a focal point during talks between Prime Minister Mark Carney and German Chancellor Friedrich Merz in Berlin on Tuesday.

In addition to LNG, the leaders addressed a partnership on critical minerals. Carney noted that a German company is among the top bidders for a significant submarine contract. The energy partnership between Canada and Germany facilitates enhanced collaboration on LNG, according to a government news release.

The two NATO allies are also planning to work together on establishing a transatlantic hydrogen trade corridor. Carney expressed optimism about the potential to ship both LNG and hydrogen in the medium term. He stated that his government is committed to supporting substantial infrastructure investments to enhance exports, with the first announcement expected in the next two weeks.

Carney highlighted the importance of expanding ports in Montreal, Churchill, Manitoba, and other locations on the east coast. He described this expansion as having "enormous" potential for shipping LNG and minerals. "It’s the No. 1 focus of this government to build that infrastructure — and particularly infrastructure that helps us deepen our partnership with our European partners," he said.

Currently, there are no publicly known projects that are close to being commercially viable for shipping LNG from eastern Canada to Europe. Two years ago, Repsol SA of Spain abandoned plans to expand a liquefied natural gas terminal on Canada’s east coast, citing high shipping costs.

Despite this, Carney's government remains optimistic about the prospects. Officials have noted that during the previous administration under Prime Minister Justin Trudeau, there was consistent feedback from Germany and the EU regarding the demand for LNG. However, the previous government primarily supported LNG exports from the west coast.

Several entities are now exploring the possibility of shipping LNG from the east, including through the port in Churchill. Some of these potential proponents participated in meetings with Canadian officials in Berlin. Energy Minister Tim Hodgson mentioned that proponents aim to begin shipping LNG to Europe within five years. "Germany sees natural gas as a transition fuel," he stated. "Canada has the opportunity to be a great partner to Germany."